LATEST PROPERTY NEWS AND QUESTIONS 15-May-2024
BANKS & HOUSE REPOSSESSIONS: MEATH
15th May 2024
The Central Bank's Code of Conduct on Mortgage Arrears (CCMA) delineates the guidelines that lenders must adhere to when addressing borrowers facing mortgage arrears or those in pre-arrears. The code mandates lenders to approach these cases with empathy and positivity, aiming to assist individuals in meeting their mortgage obligations.
The occurrence of mortgage arrears arises when you fail to fulfill a complete mortgage repayment or only make a partial payment on the designated due date.
Upon the arrears remaining unresolved 31 days from this due date, the lender is obligated to provide written notification regarding the mortgage account's status. This communication includes comprehensive details about the missed payment(s) and the total amount now in arrears. It also outlines that the arrears are being addressed under the Mortgage Arrears Resolution Process (MARP), emphasizes the importance of cooperation with the lender, explains the consequences of non-cooperation, and highlights the impact of missed payments or repossession on your credit rating.
Furthermore, the lender is required to dispatch an information booklet containing MARP details, relevant contact points for arrears issues, and information on websites with mortgage arrears resources, such as mabs.ie (which is also provided if you are in pre-arrears).
Throughout the arrears period, the lender must furnish you with a written account update every three months.
If an alternative repayment arrangement has not been established, and you miss a third repayment (full or partial), the lender is obligated to convey the following information in writing:
1. The potential for legal proceedings and the risk of losing your property, along with an estimate of the associated costs.
2. The importance of seeking independent advice from MABS or an appropriate alternative.
3. A reminder that even if your property is sold, you will remain responsible for any outstanding debt, including accrued interest, charges, legal fees, selling costs, and other related expenses.
Communication Standards
In accordance with the CCMA, each lender's Board is required to establish a communication policy, ensuring that:
1. The level of communication with borrowers is appropriate and avoids unnecessary frequency. Excessive or disproportionate communications are to be avoided.
2. Communications are conducted in a manner that is not aggressive, intimidating, or harassing.
3. Borrowers are provided with sufficient time to fulfill agreed-upon actions, with assistance if required, before any additional communication.
4. Steps are taken to mutually agree on future communications to maintain transparency and understanding.
Furthermore, a lender may only make an unsolicited visit to a borrower's home if other attempts to establish contact have proven unsuccessful, and the borrower is on the verge of being categorized as non-cooperative. A notice of at least 5 business days must be given, and the borrower has the option to meet at the lender's office instead. Additionally, the borrower can choose to be accompanied by a third party. The letter from the lender notifying the borrower of the visit must clearly outline the consequences of non-cooperation.
BANK HOUSE REPOSSESSIONS: County by County
15th May 2024
OBTAINING A MORTGAGE: SOME COMMON QUESTIONS
Check the credit score requirements of each lender. Your credit score plays a significant role in the interest rate you qualify for. Lenders may have different criteria for approving loans based on credit history.
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Mortgage brokers work with various lenders, including banks, credit unions, and private lenders. This gives borrowers access to a wide range of mortgage products and interest rates.
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Several Irish lenders offer cashback as an incentive to switch, which in many cases, could help cover legal costs and any extra fees.
An Early Repayment Charge (ERC) may be applied if you end your fixed-rate term early, so if you are still within your term check any early exit charges with your lender.
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Manage Your Finances Well: Avoid late payments and manage your accounts wisely, as your credit history is essential.
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Check Reviews:
Read online reviews and testimonials about the broker. This can give you an idea of their reputation and the experiences of other clients.
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As Ireland is part of the Eurozone, the exchange rate of the Euro against other currencies can have an indirect impact on the country's economic conditions and, consequently, mortgage rates.
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As a middleman between you and the lender, there is a potential for miscommunication. It's essential to maintain open communication with both the broker and the lender to ensure a smooth process.
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Compare interest rates from different lenders. Even a small difference in interest rates can have a significant impact on the total cost of your mortgage over time.
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IrishHouses: Mortgage Debt, Arrears and House Repossession
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